"Hot Stuff" is the seventeenth episode of the seventh season of Happy Days.
The episode centers on a fire that destroys Arnold's and traps Potsie, Ralph and Fonzie inside, and the consequences that unfold afterward.
Synopsis[]
Chachi is given the responsibility of locking up Arnold's for the night, and is reminded to turn off the grill before leaving. However, distracted by Joanie allowing him to walk him home, he throws his apron on the still heated grill. This starts a fire that quickly grows and engulfs the restaurant and kitchen ... while Potsie, Ralph and Fonzie are in the men's room. The threesome, upon realizing they are trapped, desperately try to escape ... and are fortunate that Richie (and Lori Beth) are parked outside, and they rescue the threesome just as the flames reach the men's room.
Later, the gang surveys the damage and Al muses that he has been told he won't be allowed to collect insurance, since they think Al deliberately set the fire. Chachi then admits that he forgot to turn off the grill and tearfully begs for forgiveness. Everyone is understanding except for Fonzie, who is very angry and really chews out Chachi. Richie tells Fonzie he was a bit rough on Chachi (who has run off, with Joanie going to talk to him), while Howard offers to help Al clear up matters with the insurer, and in the end Al gets a settlement check. Al still opts not to rebuild the restaurant, because Arnold's hasn't been doing that well lately, and the insurance check won't be enough to revive it.
In the end, Fonzie gives Al his life's savings, and becomes Al's business partner to rebuild a new, more modern restaurant. But since Fonzie will be busy in his shop, he makes Chachi a proxy on Fonzi's behalf, allowing Chachi a chance to redeem himself.